Prosperity Minerals says receives approach from biggest shareholder

July 15 Mon Jul 15, 2013 5:21am EDT

July 15 (Reuters) - Iron-ore trader Prosperity Minerals Holdings Limited said it received an initial approach from its biggest shareholder, Prosperity International Holdings (H.K.) Ltd (PIHL), that could lead to an offer of no higher than 130 pence per share.

PIHL said in a letter to its board that it would decide on making an offer within 28 days, according to a statement from Prosperity Minerals.

PIHL, which owns about 64.07 percent in Prosperity Minerals, said in a filing with the Hong Kong Stock Exchange that its board had approved on Friday its proposal to take the AIM-listed company private. ()

Based on the maximum price, the remaining about 36 percent stake is valued at about 67 million pounds ($101.29 million), PIHL said.

Prosperity Minerals had a market capitalization of about 114 million pounds as on Friday, according to Thomson Reuters data.

Prosperity Minerals sells iron ore to large and medium-size steel mills in China. It is also a real estate owner and developer and has investments in two cement manufacturers in the Asian country.

Shares in Prosperity Minerals were up 28.48 percent at 102.5 pence - well below the upper limit of the proposed offer price - at 0920 GMT on Monday. PIHL shares closed up 2 percent at HK$0.27 on the Hong Kong Stock Exchange.